Journal Article
No. 2008-12 | April 17, 2008
Growing up to Financial Stability


This lecture revisits the evidence on the incidence and severity of different varieties of financial crises within the context of globalization then (pre-1914) and now (1980 to the present). I then discuss the determinants of emerging market crises from the perspective of the recent balance sheet approach. This approach puts at center stage the importance of financial development. I then peel the onion back further and consider the “deep” institutional determinants of financial development and their relationship to financial stability. I conclude by conjecturing about the ways countries learn from their financial crises to improve their institutions and grow up to financial stability.

JEL Classification:

F4, G2, N1, O1



Cite As

Michael D Bordo (2008). Growing up to Financial Stability. Economics: The Open-Access, Open-Assessment E-Journal, 2 (2008-12): 1–17.

Comments and Questions